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Broadcom
S&P 500 Nasdaq 100
$1.80T
Market Cap
77.5
P/E
1.48
PEG
16.5%
ROCE
31.0%
ROE
0.80
D/E
39.9%
OPM
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally.

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⭐ Superinvestors Holding AVGO
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Manager Shares Value % of Fund Period
Daniel Loeb Third Point LLC 50.0K $15.5B 0.74% Mar 2026
Tiger Global Management Tiger Global Management LLC 3.58M $1.1B 4.86% Mar 2026
Steve Cohen Point72 Asset Management 2.27M $701.4M 0.90% Mar 2026
Jim Simons Renaissance Technologies LLC 793.8K $245.7M 0.38% Mar 2026
Cathie Wood ARK Investment Management 407.8K $126.2M 0.98% Mar 2026
Stan Druckenmiller Duquesne Family Office 196.0K $60.7M 1.80% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$22.2B
+48% YoY
Operating Income
$14.9B
+52% YoY
Operating Margin
67.3%
+2.0pp YoY
Net Income
$12.1B
+55% YoY
What Went Right
  • AI semiconductor revenue of $10.8B beat guidance and grew 143% YoY
  • Q2 operating margin reached a record 67.3%, up 200bps YoY
  • AI bookings exceeded $30B in the quarter, providing multi-year visibility
What to Watch
  • Consolidated gross margin declined 230bps YoY to 77.1% due to mix shift toward lower-margin AI semi
  • Non-AI semiconductor revenue grew only 6% YoY, with wireless seasonal decline partially offsetting broadband recovery
  • Reliance on six core customers for AI revenue concentration risk
Management Guidance
  • Q3 fiscal 2026 revenue guidance of $29.4B (+84% YoY)
  • Q3 non-GAAP operating margin guidance of approximately 67%
  • Full-year fiscal 2026 AI semiconductor revenue expected to reach $56B (+180% YoY)
Investor Lens
The thesis is significantly stronger after this call. Broadcom delivered a massive AI revenue beat and raised guidance sharply, with Q3 AI semi revenue expected to double sequentially to $16B. The company now has clear visibility into 2027 with an over $100B AI revenue target and $30B in quarterly AI bookings. The only caution is gross margin dilution from mix, but operating leverage is stable. Broadcom's strategic partnerships (Google, Meta, OpenAI, Anthropic) and the new Apollo-backed XPU platform further de-risk long-term growth.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q2 beats across the board; AI strength unmatched
Revenue
Total revenue hit a record $22.2B, up 48% YoY, exceeding guidance. Semiconductor solutions revenue was $15.0B (+79% YoY), driven by AI semiconductor revenue of $10.8B (+143% YoY). Infrastructure software revenue reached $7.2B (+9% YoY).
Profitability
Non-GAAP net income was $12.1B, up 55% YoY, with diluted EPS of $2.44. GAAP net income was $9.3B, up 88% YoY. Free cash flow was a record $10.3B (46% of revenue).
Margins
Consolidated gross margin was 77.1%, down 230bps YoY due to product mix shift toward lower-margin semi. Operating margin improved 200bps YoY to a record 67.3%, demonstrating strong operating leverage despite gross margin compression. Adjusted EBITDA margin was 69%.
Balance Sheet
Cash and cash equivalents ended Q2 at $19.6B, up from $14.2B in Q1. Free cash flow was $10.3B, with capital expenditures of only $231M. Inventory days increased to 86 days to support accelerating AI demand.
Key Risks
Management flagged potential gross margin pressure from increasing AI semi mix, though they emphasized this is not structural. In Q&A, they noted supply chain constraints for wafers and HBM as a risk, but stated they have secured supply for 2026-2027. Customer concentration (six core AI customers) remains a key risk.
Outlook
Q3 fiscal 2026 revenue is guided to $29.4B (+84% YoY), with AI semi revenue accelerating to $16B (+200% YoY). Full-year fiscal 2026 AI semi revenue is expected at $56B, and FY2027 AI semi revenue is reiterated at over $100B.
Generated by AI · Q2 2026 results · Not investment advice
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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